When planning your estate, you may have decided that creating a Trust Fund is right for your assets and Beneficiaries. However, one of the most important things you’ll do when creating a Trust is name a Trustee. This individual plays an incredibly important role in ensuring your wishes are carried out, so understanding the scope of their responsibilities is critical to naming the right person for this role. The following blog explores the obligations of the Trustee of a Trust Fund in further detail and why it’s important to connect with a Medina County, Ohio Trust preparation lawyer who can help you navigate this process to ensure your documents are valid and in good hands.
What Are the Responsibilities of the Trustee of a Trust Fund?
Generally, the first thing that the Trustee of a Trust Fund will do upon assuming ownership of the Trust is familiarize themselves with the assets held in the Trust, the Beneficiaries, and the terms and conditions you have written.
It’s important to understand that Trustees are held to a legal standard known as Fiduciary Duty. Essentially, this means they are legally required to act in the best interest of the Trust and if they fail to do so or purposely act with bias, they can be held responsible for their misconduct.
Once the Trustee becomes familiar with the Trust, they must administer the assets according to the terms and conditions of the creator’s wishes. In some instances, this requires making decisions on behalf of the Trust. However, the Trustee must make the decisions in line with the wishes of the Trust’s creator.
Finally, the Trustee must keep a detailed record of all transactions and the distribution of assets. This is critical to protecting yourself and communicating effectively with Beneficiaries.
How Do I Pick the Right Person for This Role?
As you can see, there are many responsibilities a Trustee must adhere to, which highlights the importance of ensuring you choose the right person for this role. In general, you can name anyone to this role so long as they are over 18 and of sound mind at the time of the Trust’s creation. However, just because you can name virtually anyone doesn’t mean you should. Instead, it’s in your best interest to choose someone trustworthy and responsible to take control of your Trust.
In addition, you should consider naming an alternate, in case the person you named cannot assume the role when it comes time. This ensures someone you are comfortable with can be the Trustee instead of letting the court decide.
When you are ready to create a Trust, it’s in your best interest to connect with an experienced estate planning attorney for these matters. It can be overwhelming and the last thing you want is to make an error that invalidates your plan, leaving your assets and Beneficiaries vulnerable. At Krause Law, our dedicated team can walk you through this process to help you achieve peace of mind. Connect with us today to learn how we can help you during these complex times.
